How speeding tickets affect your insurance depends on many factors - like where you live, how fast you were going, and any previous violations. So next time you catch yourself going a little fast, make sure you slow down and save yourself a lot of money.
If you get pulled over by the police, one of the first things you wonder is how much is this going to cost me? That’s an entirely valid question, because speeding tickets have two components: the cost of the citation, and the increase in your insurance that’s likely to follow.
Whether it’s auto insurance, life insurance, homeowner’s insurance, or business insurance, insurance companies base the premiums they charge largely on the degree of risk that they take on in issuing a policy.
Risk is the assessment – based on previous behavior – that the company assigns to the likelihood that it will pay a claim on your policy at some point. The higher the risk, the higher your premium will be.
When it comes to car insurance, risk is largely determined by your driving history, particularly within the past few years. Speeding is the most common of all traffic citations. It’s also one that’s considered to be a strong indicator of at-fault accidents. That increases the likelihood that the insurance company will need to pay a claim.
In order to price that higher risk into the policy, you’ll be charged a higher premium to compensate for that expected risk. The company will naturally check your driving history at the time you purchase the new policy. But they will also pull your driving record periodically after that. If any traffic violations turn up on your record, your insurance premium will likely go up.
If you accumulate too many violations, the company might even drop your policy.
Each insurance company has a different view of the impact of a traffic ticket on your insurance premium. You might find that you can get a lower premium by going with a different company. Some insurance companies might not raise your premium for a single violation and others may increase it a little bit. Still, others might hit you with an insurance rate increase that screams go away!
Here’s a list of the best auto insurance companies operating in your area.